Negotiation is a significant part of sales. Whether it’s a product or a service, good negotiation can seal the deal and assure you of excellent terms. Here are some easy-to-understand, simple negotiation tactics that every salesperson should master.
1. Know What You Want
Know what you want before you start negotiating. Do you want a higher price, a better contract term, or perhaps more perks? Make a detailed list of your goals and remember them during the negotiation. Knowing what you want helps you stay focused and avoid getting sidetracked.
2. Understand the Other Party
Also, one should understand what the other person or company wants. Research their needs and preferences and any pain points they might be going through. Thus, they will be able to tailor their offer to suit them and, at the same time, have what they want. Ask questions and listen well to their answers.
3. Build a good relationship.
It will smooth the process of negotiations if the other party is in a good rapport with you. Be friendly, respectful, and professional. Let them understand that you are interested in their needs and their concerns. People tend to be more lenient with you if you show comfort and respect to them.
4. Be Prepared
Preparation is key. Know your product or service like the back of your hand. Understand the market, your competitors, and any potential objections. Anticipate the common queries and objections that the opposite party might have in their minds. To this end, the more prepared you are, the more confidence you will show during the negotiation.
5. Begin with a Strong Opening
Your opening offer sets the tone for the negotiation, so go in strong but reasonable. Your opening offer should be like a window that allows you room to concede if and when needed. Most important, though, is that it is reasonably justified and well thought out.
6. Use Clear and Simple Language
Do away with jargon and complex terms. Keep your language simple when explaining your point. This helps to avoid misunderstandings and ensures that both parties are on the same page. Do not be afraid to ask for a point to be made clear.
7. Listen Actively
Listening is as good as talking. Listen keenly to what the other party is saying. Indicate that you have listened by nodding, summarizing points, and asking questions. It helps create rapport and indicates your appreciation for their input.
8. Stay Calm and Patient
Sometimes, negotiations might go sour or take longer than they should. Keep your cool and be patient during the process. Getting angry or annoyed can damage your negotiation and prevent you from coming to an agreement under fair terms. Take a deep breath and stay optimistic on the inside.
9. Apply Questions Effectively
Asking the right questions will be useful in retrieving information to drive the negotiation. Use open-ended questions to prompt the other party to give more details. For example, ask, “What are your main priorities?” not, “Do you want a discount?”
10. Make Concessions Wisely
In any negotiation, you will need to make concessions or yield something to get what you want. Make concessions strategically. Give away something lower in value to you but higher value to the other party. That way, you will still have most of your wants and can show flexibility.
11. Know When to Walk Away
Sometimes, things can go entirely beyond your expectations and may not work how you’d like. If the terms remain undesirable or if you fail to meet your minimum goal, you should leave the negotiation and look at opportunities. Be free to leave if you feel it may be in your best interest.
12. Summarize and Confirm
Briefly describe the key points again before closing the negotiation and let the parties agree. This will ensure no misunderstandings and everyone lives in the same world. Understand correctly and confirm what has been decided upon the stipulated terms of the negotiation by both parties.
13. Follow up
Follow-Up: After concluding a better negotiation, always send follow-up correspondence to the other party confirming all the details and keeping the relationship positive. An excellent way to do this is by sending a thank-you note or summarizing the agreement and discussing the next steps through email. This will be a gesture of professionalism and keep the other parties in a good temper for other negotiations.
14. Practice and Learn
Negotiation improves with practice. Seize every opportunity to negotiate—even minor—to hone your skill. Learn something different from each opportunity, and be receptive to feedback. The more you do, the better you’ll become.
Conclusion
Knowing what you want, understanding the party on the other side of the table, building better relationships, and effectively using negotiation tactics will help you win more chances for successful agreements. Keep preparing yourself, listen to others, and make wise concessions, but do not give in. A little bit of practice and patience is all that it will take to have you become a seasoned negotiator, always managing to achieve better results from those sales efforts.
